About BTU Protocol (BTU)
BTU Protocol (BTU) In all booking platforms, the believe that centralization has led to an imbalance where online platforms are gaining more power over the actual service providers who bear the operational costs and investments. Digital network effects are preventing existing players from operating in a free market. As a result, service providers are experiencing high commission fees ranging from 15% to 35%. Those fees are paid to the centralized “winner takes all” booking platforms. Other issues with centralized booking platforms include, but are not limited to : – Loyalty points are platform or service specific, – End-user confidential information is at risk of large-scale hacks, – Complementary services offered are limited. With blockchain networks emerging as a new global infrastructure, we have the opportunity to create vastly different power structures. A public inventory and an open protocol lower operational costs while allowing fair competition between a higher number of market participants.
BTU Protocol (BTU) At first, the Internet was thought to lead to disintermediation in many industries. Twenty years after the dot-com bubble, a new type of intermediary – “Internet Platforms” – dominate these industries. Internet platforms have provided superior value propositions to end users in terms of convenience, price or performance. But they have also benefited from powerful digital network effects due to the very nature of the Internet technology.
BTU Protocol (BTU) The centralized platforms have exploited this market power to win it all, and eventually to collect higher and higher returns. Their blockchain-based booking protocol can benefit any industry that relies on a reservation process and where centralized players have become the dominant participants. Since decentralized platforms foster the adoption of more transparent practices, it should encourage healthier competition. It should then alter the walled-garden content policy in place and encourage a new wave of developers to deliver innovative and open services, leading to better functioning markets. An array of markets could benefit from the above. For instance, the protocol could be used to book many of the following services : – Hotel and Apartments
BTU Protocol (BTU) Innovative offerings could be built that enable the booking of bundled services. As our protocol is industry independent and easy to implement, existing players in one industry may be able to offer new services to their existing customers (cross-sales). That is what platform envelopment strategy suggests where a second entry path is required, that does not rely on Schumpeterian innovation. This strategy has been documented by Thomas R. Eisenmann, the Howard H. Stevenson Professor of Business Administration at the Harvard Business School, in the Platform Envelopment working paper
BTU Protocol (BTU) Storage Key Points
|Coin Name||BTU Protocol|
|Circulating Supply||90,514,336.44 BTU|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Impacted Market Example Hotel Booking
The hotel booking sector was one of the most impacted industries at the start of the Internet revolution. It is now a highly concentrated oligopolistic market, with a Herfindahl Index above 5,000, we have found it to be an excellent first example use case of the BTU Protocol. Indeed, two online travel agency (“OTA”), namely Expedia and Priceline are dominating the market due to market forces only possible with the current state of the internet as well as extensive consolidation (acquisitions).
Expedia now owns Expedia.com, Hotels.com, HomeAway, Hotwire, Orbitz Worldwide Travelocity, Traveldoo, Trivago, Venere, Wotif Group, Carrentals.com, Classic Vacations and eLong.com. – Priceline now owns Booking.com, Kayak, Priceline.com, Agoda.com, Cheapflights.com, Ctrip.com (partially), Momondo.com, Opentable.com, Rentalcars.com and Rocketmiles.
Economic theory predicted that leading OTA would increase their fees and that these costs are split between consumers and hotels according to the relative elasticity of supply and demand. This is exactly what is happening. In September 2017, Accor Hotels’ CEO Sébastien Bazan explained the business issue facing large Hotel operators: “I think all the big hotel companies in the world, we have the same market cap as Booking and Expedia together, $130 billion. They probably have together 80,000 to 90,000 employees. All together we have over 3 million employees. So it is a weakness. It appears to be a weakness, which is why they have so much value in the stock market because they have better agility, less volatility and better free cash flow”.
Specification and Sequence of Steps
The BTU protocol involves potentially ten steps and our standardized decentralized reservation contract (RES). Some of following steps can be relayed off-chain, but are always settled on-chain. 1) Provider is creating an “availability offer” (OFFER) specifying : ○ resource id OR bundle id. A bundle is a group of resources. ○ resource name OR bundle name ○ resource category ○ deposit amount in BTU : amount requested for escrow in order to allow a reservation request ○ commission amount in BTU : amount paid to booker ○ availability start date, ○ availability end date ○ limit date and time for a free reservation cancellation ○ signed (r,s,v) hash of previous information.
This signed hash serves as a signed identifier of the resource to be reserved. ○ Metadatas : daily price of the resource (fiat amount to be paid at resource “delivery”), links to images, long description, key-values that can be used as search criteria, etc… The availability data is broadcasted over any communication channel, ideally a decentralized off-chain solution. ● (Step 1.2) At any moment, the provider can update the resource metadata by broadcasting a new message. It is very common that yield management requires many prices (fiat price of the resource) update during the same day. This update only impacts the off-chain components.
To avoid any malicious behavior, the protocol implementation may request providers to escrow some BTU tokens before being allowed to submit availabilities offers into the booking infrastructure. The amount of BTU tokens to be escrowed may depend on the provider’s reputation as tracked by a third party service.
For Bookers and Providers to meet, a booking infrastructure is required to host and propagate the messages. In its principle, this infrastructure is very similar to an exchange order book (availability book in this case) that aggregates sell & buy orders (availability offer & availability request). This leads us to qualify this booking infrastructure as an “exchange” or “relayer”. The protocol described in this section does not describe an incentive for third parties to operate such a relayer platform. However, the next section will offer suggestions of how BTU token may be used to design such incentives.